August 21, 2008

HousingPANIC Stupid Question of the Day



Why do people drive all over town to save 2 cents on a gallon of gas, but they pay 6% (or thousands and thousands and thousands and thousands of dollars) to a real estate clerk for a few hours work without even thinking about it?

67 comments:

Anonymous said...

Because the commission is financed it doesn't feel like real money like cash does

Anonymous said...

Simple. Media mind control. Watch 5 minutes of a local news cast and I guarantee there will be some mention of where to find the cheapest gas in town. Never mind that the cost of driving 5 extra miles each way offsets and savings by the 2 cent difference.

Same with r/e. Media is nad has been for years telling people real estate is a great investment. Never mind housing is crashing.

People believe anything the media tells them. If you want further proof just look to Hussein Obama...empty suit that the media has anointed as the new messiah.

Anonymous said...

1-Its just rolled into the loan so people and spread out over thirty years so buyers do not realize how much they are forking over.

2-The status quo is what it is because no one questions it.

3-The anti-competitive tactics employed by realtwhores make going FSBO or discount virtually impossible.

4-The gloss that the "seller pays the agents" makes buyers think they are not paying for it, not realizing the commission is factored into the sale price. The irony here is that buyers and not sellers are in the better position to forego agency representation in a realty transaction in light of realtwhore anti-competitive trade practices. I know many people who just hit open houses or work selling agents and when the get down to business the absence of a buyers agent is used as a negotiating chip to further reduce the price!!

bailout 08 said...

behavioral econ (e.g., people are more likely to overpay $10 on a car than a tube of toothpaste). it has to do with how large that overcharge is relative to the whole. an overpriced house like the ones we've seen in the previous years makes a few k seem like peanuts.

Anonymous said...

if most people understood this, they would be pretty upset about the taxes they pay, and the $ the gov pisses away. they would want knowledge as a solution instead of more taxes/gov.

Anonymous said...

Out of sight, out of mind. Just like driving a SUV to Best Buy to purchase or return a $10 item, which costs $20 in vehicle cost (gas depreciation insurance). It's cheaper to just throw the item away.

Give me MY 6% said...

I cannot figure this out either Keith...Obviously the wealthy have the cash and don't want to miss the evening massage because a buyer wants to look at their Mcmansion. I can see how realturds got a toehold on the big money...but what is puzzling is the median priced homes with sellers of avg. means that really don't have $10k+ to give to a realturd and his cohorts in crime. We are talking about people who have large mortgages,3 car payments,credit card debt & mouths to feed just forking over the Benjamins like they have a printing press in the basement.

Will they ever learn Keith? Is there hope they will see the realturds for the leaches they are and do that little bit of labor for themselves so they can keep THEIR money?

Anonymous said...

you have a picture of a service station at the top. that is good keith. because that is where a lot of these realwhores are going to be working sooner than they think. where else are they going to get jobs? its the end of the line of them. and to that. i say bye. to me, they are nothing more than a bunch of minimum wage apes, parading around acting like they are professional...

Ohio Loan Officer said...

Most people want someone to hold their hand and do it for them.

Greyhound said...

The thing that always befuddled me was the fact that they do as much or more to sell the 200K home as they the 500K home. Equal pay for equal work? The commission bound to the price is a faulty method.

Greyhound said...

The thing that always befuddled me was the fact that they do as much or more to sell the 200K home as they the 500K home. Equal pay for equal work? The commission bound to the price is a faulty method.

debt junkie said...

There's nothing like a couple of warm coppers in your pocket!

Anonymous said...

Everyone else does it. Right?

america is dead said...

Stupid, Lazy Americanos.

Plain, simple.

The're at Starbucks right now waiting on line to pay $2 - 5 for a .20 cup of boiled water.

Next stop, $ 150 tank of SUV gas.

Then on to Wal Mart for leaded toys and cheap plastic shit from our arch enemies, China.

DIE U PIGS

jim said...

A good agent is worth every penny my friends.

Anonymous said...

jim said...
A good agent is worth every penny my friends.

August 21, 2008 2:45 PM
------
No such thing as a good realtwhore from the perspective of a buyer or seller, just from the perspective of the broker they work for.

I do agree some realtwhores maybe worth as much as a penny, but most are worth much less.

Anonymous said...

I absolutely despise these Realiwhores, so here's what I'm doing about it...

I've signed up to take the brokers test. The test, by the way, is an absolute joke. I will thus have my broker's license very shortly. I will then act as my own broker and thus keep the commission when I purchase a house in 2011. I will also broker my friends deals and rebate the vast majority of their commission.

Tom

sundry vermin said...

Simple. Media mind control. Watch 5 minutes of a local news cast and I guarantee there will be some mention of where to find the cheapest gas in town.

I'm gonna try this experiment tonight, even though I haven't watched local news for longer than I can remember.

There is some danger here though. Hope I don't suddenly grow a fleece and high-tail it over there. On second thought, that's not going to happen.

Anonymous said...

if most people understood this, they would be pretty upset about the taxes they pay, and the $ the gov pisses away. they would want knowledge as a solution instead of more taxes/gov.

August 21, 2008 12:53 PM

=======

Amen. If people had to write a check to the IRS every year instead of withholding taxes, taxes would be 1/5 of current levels. But withholding taxes by employers makes it seem like it's not so bad.

Which is why people like myself who do send a check every quarter are mad as hell about taxes, but the cube drones who pay it in 24 or 26 installments are blissfully ignorant of the true tax burden.

There are even people who think if they get a tax refund check, that means they pay no taxes.

Anonymous said...

Next stop, $ 150 tank of SUV gas.

=====

That would require a tank capacity of 40-50 gallons. Try again Cletus.

Wells said...

jim said...
A good agent is worth every penny my friends.

I don't know about all that. A 'good agent' is someone who can tell you what six percent of any house price is.
The formula [$(House Price) * 0.06 = $(Commission)] can also do that, and there I gave it to you for free.

Anonymous said...

yea, i have thought the same thing whenever I see people waiting in line for 2-3 hours to buy some cheap promotional gas. How little is their time worth to justify saving 50 cents a gallon? I couldn't financially justify waiting 2-3 hours for a free tank of gas.

Anonymous said...

Next stop, $ 150 tank of SUV gas.


------------------------------------

Is George Bush posting to Housing Panic?

JordanT said...

There are even people who think if they get a tax refund check, that means they pay no taxes.

I know people who love getting the $2K check at the beginning of each year. They think I'm crazy for wanting to write a check, rather than receive one. I'd rather have that money the year before when its value hasn't been eroded by inflation, and I can invest it in something rather than an interest free loan to the government.

Anonymous said...

I don't watch TV
I wear a fiol hat
and I would never ever use a realator

Anonymous said...

I despise realtors, but I have to admit that when I sold my house in 2006, the agent I chose knew the market way better than I did. She priced my house a good $75000 above what I thought it was worth and for what other agents said I should list it. Sold in 10 days. Her knowledge, bravado, luck (whatever) translated into tens of thousands extra in my pocket.

Then again, I interviewed five agents and chose the one longest in the business and longest serving my neighborhood. She was a full time, dare I say it, professional, and it showed in her manner and expertise.

Man, I can't believe I just admitted that some agents are actually good.

Anonymous said...

Did you get any kind of salary increase from '91 to '05?

Why do you expect realtors to go 14 years without a raise?

Anonymous said...

Same reason they voted for George W. Bush twice.

pwnd said...

REALTORS are the biggest slime on the planet.

I'm 36, and I've been waiting to buy my first house. Oh yea, I've also been earning 6 figures since I was 28. Wish I would have bought early, and sold at the top. But, the bubble was just so obvious (to me) since 2003 and I always underestimate the stupidity of the NASCAR masses i.e. anybody who supports McBush.

I think passing the realtor exam is a great idea! I'm sure I could pass it with a couple of hours of preparation. Based on a $1mm purchase I should make half of 5%, which is $25k; not bad for half a Saturday.

Anonymous said...

penny wise, pound foolish

Anonymous said...

Cuz the jackass buyer is paying for it.

Anonymous said...

Anonymous said...
Did you get any kind of salary increase from '91 to '05?

Why do you expect realtors to go 14 years without a raise?

August 21, 2008 5:01 PM
-----------
Yes, but I produced actual goods and services that had intrinsic value, whereas realtwhores simply game a couple of fools into giving them a comission check and produce nothing.

Agent 99 said...

Because they added 6% to the price of their house, making the commission zero.

Those days are over when you can't sell your house for what you paid for it.

Anonymous said...

There are even people who think if they get a tax refund check, that means they pay no taxes.

----------------------------------

ah, but for some this is true.

Did you know it is possible to pay NO TAXES and yet get a refund check back after you file? it is called the earned income credit.

jim said...

Most of you peons have never owned a house so you have never used a realtor.Pull your head out the sand and actually make a commitment for once in your lives.Quit reading blogs and watching granny porn all day.

Anonymous said...

"...She priced my house a good $75000 above what I thought it was worth and for what other agents said I should list it. Sold in 10 days..."

I just had a similar experience; would've left quite a bit on the table I couldn't afford to lose.

The 6% way more than paid for itself. It had to be sold, and I couldn't risk a Realtor boycott on my FSBO in this market.

Edgar Alpo said...

mozilo is a pig, i hope he dies

Cornhusker said...

Some realtors are worth a 6% commission if you need to sell ASAP in a down market AND said realtor helps you not only sell your house, but also helps get you top dollar.

Some realtors are completely worthless.

The same could be said for any profession. Queef, your blog is becoming tired...same rehashed, mucas-covered tag-lines...GIVE US SOMETHING TO THINK ABOUT!

Cornhusker said...

PWND,

If you're 36, have have six-figures for several years, and you're still renting...well, my friend, you're a loser who likely has a horrible credit score.

Reminds me of an old saying..."you can polish a turd all you want, but in the end, it's still a turd..."

Anonymous said...

pwnd, you've been making 6 figures since 2000 (36-28=8) and knew we were in a bubble in 2003, so you didn't buy?

Something doesn't add up here. Way to be an almost 40-year old renter, BTW.

I'm on pace to pay off my 30-year fixed in 10 years, before I'm 50. Just think, you will just start paying down appreciable principal when you are 50. LOL

Oh, and BTW...the bubble was on by Y2K...like most HPers, you claim to be ahead of the curve in seeing the bubble around 2003-2005, but you were already too late.

Yoski said...

" jim said...
Most of you peons have never owned a house so you have never used a realtor.Pull your head out the sand and actually make a commitment for once in your lives.Quit reading blogs and watching granny porn all day."

Damn Jim, you sound like an angry bag holder. I have made a commitment...like not making financial blunders. When it's cheaper to own than to rent I will buy. Unitl then it would be simply foolish to buy. Maybe one day you'll figure that out on your own, then again maybe you won't.

pwnd said...

Cornholer & Anono50 y.o.,

1. Actually I have perfect credit - around 780+/-

2. I have zero debt and several hundred thousand in the bank. Freedom is great!

3. Turns out we were right about the bubble, and it work out that I didn't buy an over priced debt trap.

So your comment about "polishing a turd" - don't get it.

The comment about being almost 40 and not owning a house - don't get that either. Check the scoreboard -last time I checked, I was winning.

HPers won; Q.E.D.

Andrew Hac said...

Quote from the stupidest Americano in the Holy Land of the Great Snapper Turtle:
#####
Cornhusker said...

PWND,

If you're 36, have have six-figures for several years, and you're still renting...well, my friend, you're a loser who likely has a horrible credit score.

Reminds me of an old saying..."you can polish a turd all you want, but in the end, it's still a turd..."
#####

You ain't no "Cornhusker". You are a pathetic piece of human excrement squirming with stinky, crawly maggot. You don't even have a brain. What you have up in your ass-head is SHITs...

Now to the good old proverb:

The Americano is as toasted as a snapper turtle skewered on a stick from head to ass all sizzling, juices dripping, fat popping over a bed of white hot charcoal grill.

Americano = Grilled Snapper Turtle

Heeeee... Haaaaa... Arrrrr...

The mentality of the average Americano is just amazing, if not stupefying.

A Circuit City Sale Associate is able to buy a $500K house.
A Shoe Sale Man is driving an Audi.
An uneducated, illiterate, ignorant Ford factory auto-assembly worker makes $40/hour.
A single loud mouth, fat-ass, obese, diabetic, divorced driver is driving a stupendous, big-ass, chicken-coop For SUV Expedition so he/she can feel proud about being an Americano. That is stupider that a dog (A scabie dog, that is !).
Illegal immigrant is getting welfare, medicare and medicaid free health care, free school lunch, free education, pay no tax, every thing is under the table cash.
The Iraqi has Weapon Of Mass Destruction.

Talk about brain-dead zombie, blind-as-a-bat crapper. Maybe that is the reason why there is such word as "Trailer White Trash", "BORKAFATTY" AKA The Pig chomping at the feed trough...

KD said...

"Pwnd",

You're full of crap with your "several hundred thou" in the bank while still renting your doublewide trailer.

Cornholer was right about you, "Pwnd"...you are a turd.

pwnd said...

Andrew Hac, you need meds - badly. Also, I find you posts not only completely insane, but annoying and a waste. You are a festering genital wart on the cock of the world.

Kd, what's so hard to believe that I have money, and I chose not to over pay for a house? I rent in one of the most expensive zip codes in Southern California. I'd wager my rent is 2-3x your mortgage payment, but compared to buying I'm still getting a great deal for where I live. When that changes I'll buy. Oh yea, I have got a "doublewide" - just ask your wife.

Anonymous said...

Pwnd:
"The comment about being almost 40 and not owning a house - don't get that either. Check the scoreboard -last time I checked, I was winning."

By whose standard? A 40-year old renter is a renter who was renting way before the housing bubble, unless they lived at home until they were 30.

Any way you slice it, you didn't buy when the opportunity was there and have been renting or leeching for 20 years. That spells loser to me and a lot of people.

"I chose not to over pay for a house? I rent in one of the most expensive zip codes in Southern California. I'd wager my rent is 2-3x your mortgage payment..."

You're so wise! To avoid overpaying for a house, you overpay for rent. Well played! Why not live somewhere cheaper? You're so smart with your money, you should know how to hang on to some of it. Why do I have to do your thinking for you?

KD said...

"Pwnd",

I don't have a mortgage. SOCAL is a sh*thole, regardless of your zipcode.

Were you able to reply because you're on break from your $12/hour telemarketing job?

"Pwnd", you're broke & you're a renter at age 36, so I agree with Cornholer: you're a Turd with a capital "T".

LaJollaMoia said...

Hey Pwnd,

What is it exactly that you're "winning"? Face it dude, you are almost 40 friggin' years old and you still RENT???

What a friggin' loser...or as everyone else seems to think of you...a TURD.

Pwnd, I think that's going to be your new name from now on...Turd.

Have a nice weekend, Turd. LOL!

KD said...

"PWND" = dogsqueeze

Anonymous said...

Let's all guess what pwnd's FICO is:

My guess is 610, with an auto-repo and three credit card charge-offs, all within the last three years.

Anonymous said...

Re: Pwnd's fico:

my guess is 634, $543.34 in the bank, works part-time at Mickey-D's...lives with his divorced, chain-smoking, obese mommy

ohio_state_rocks said...

I'm gonna' guess Turd's:)...I mean Pwnd's FICO score is 605, with only a Sears card and a Best Buy card contributing to the credit score...and he's prolly late paying them every month! Turd...I like it!

KD said...

Yo' Dogsqueeze, er, I mean, Turd, um, I mean "PWND"...with that several hundred thousand in the bank, do you have to spread it out over several different banks to keep under the FDIC limits, or are you just plain FULL OF SH*T?!

Turd.

pwnd said...

LaJollaMoia,

Winning by pwnd:

1. Health
2. Gorgeous wife (5'8, former model who's smart for a hot chick)
3. Plenty of money in the bank
4. *Zero debt*
5. Great job with huge upside
6. Education (2 degrees in finance)


If not having a house and a ton of debt makes me a loser, then I'm glad I'm a loser in your book.

You have a nice weekend too! Have fun at Home Depot and Bed Bath & Beyond, Asshole!


Kd, tell your wife "Hi" for me you douchebag faggot!

debtisbad said...

My guess for pwnd's credit score:

692, unemployed, and living in his parent's basement...

pwnd said...

Kd, I like the fact you appear to be asking for advice now...

No, I don't spread it out. I think savings and CDs are for losers. Guaranteed way of losing money since they don't even cover inflation right now. I actually know my way around the stock market, and do well with that. My qualified retirement money is in an endowment style fund of alternative investments, i.e. hedge funds, commodities & private equity.

KD said...

Looks like Turd is gettin' upset...hehehehehe!

Anyone who brags about his "former-model, hot wife", "tons-o-cash" in the bank, and his mail-order college degrees is nothing but a...what is it I'm thinking of calling him...oh, I know...a TURD!

Turd; you and Bertha, or Helga, or whatever her name is have a nice weekend too!

LaJollaMoia said...

It appears as though Pwnd's new name has taken hold!

Dude, don't get so angry; after all, you're rich with a hot wife. It's all good, Turd!

Turd said...

Duh...I have a hot wife and I'm rich...duh...and spend my whole day posting messages of my success on this VERY POPULAR, MAINSTREAM housing blog...duh...

fiona said...

Turd's Fico:

my guess is he's destitute, living with a relative. I'm not kidding, I truly believe this is true.

Anonymous said...

Turd,

The fact that you keep coming back to "prove" your wealth and investment knowledge speaks volumes as to how young/immature you really are.

People with money/wealth don't brag about it, or even mention it, on blogs such as this.

You're full of crap, son; and that make you a Turd!

KD said...

"PWND",

You are pitiful. Give it up man. I actually feel sorry for you.

Anonymous said...

Turd,

Why are CD's for losers? I'm on the back-half of a 15-year 6.35% brokered-CD; a rate which I feel fortunate to have.

You guys should check brokered-CD rates; they're usally much higher than what you can get from local banks.

HPERFORLIFE said...

I'll guess 653 on turdy's credit score. Also, I doubt he's married and i doubt he has more than $10K in the bank...just my guesses, I could be wrong, but the way he presents himself screams "Poser" to me...JMHO.

pwnd said...

Not a poser. My life is truly very good. Wish I had a nice house, but that will come in time – no hurry as they’re getting cheaper by the day.

You are right about one thing, I should stop coming back to this thread. As entertaining as it has been, this will be my final posting.

Later,

Turd

Anonymous said...

I dont' know how this conversation turned into a turd-squishing contest:), but I believe there are some good realtors out there; just not many are worth 6%.

KD said...

"PWND",

I for one was just kidding you; although I don't believe the story you presented one-bit (maybe the hot wife part;)

Renting is almost always a poor choice if you can afford to buy...period. Good luck!